dubai property investment questions :)

crosvs · #1 04-19-2006, 12:48 PM

Hey Everyone-

So as I'm the only child -- yup, no siblings! -- and my parents are pushing 70, they want to help me start accumulating some property as soon as practicable. They are prepared to help me start even if I can't move into the new place since I can simply rent it out in the meantime.

While ultimately I plan to have a place in LA for after law school in 2 yrs (or next year if I can transfer to USC!) I'm thinking of getting a place anyway, anywhere worth investing -- IF it's lucrative enough such as...

DUBAI.

I've been reading up on it, and it seems that since 2002, any foreigner can own the property AND the land (for up to 99 years?). And check out property prices now: they're DIRT cheap.

Any thoughts? What do you guys think?

ALSO: I'm also a member over at 6speedonline.com ... there's a guy there who wants to set up a Koenigsegg (sp?) dealership there... now THAT's a good idea

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fln8tive · #2 04-19-2006, 01:09 PM

dxbX5 is a member in Dubai, maybe he can help.

crosvs · #3 04-19-2006, 01:15 PM

dxbX5 ?? your suggestions?

fln8tive · #4 04-19-2006, 01:23 PM

Maybe PM him? Do a member search.

So...blatant hijack, but what is your take on the nuclear showdown going on in the Persian Gulf right now? Start a thread on that and it could get interesting.

HoyaTerp · #5 04-19-2006, 01:30 PM

Quote:

Originally Posted by crosvs

IF it's lucrative enough such as...

DUBAI.

Unless you're thinking of being a partner in a commercial property venture, you'd be better off keeping your investment closer to home. Being an absentee landlord is difficult enough even when the property is in the next state or county. But overseas? No way, not for a first-timer whose primary focus is law school. Buy a fixer-upper in a halfway decent neighborhood and live in it until you flip it and move on to the next.

MiCkEy · #6 04-19-2006, 01:40 PM

Nice neighborhood in Dubai is not cheap. Also check out some of the current developments as you can rent them out and the government does guarantee fixed rentals for 2 years or so (that might have changed). The builder will, in some circumstances, also find the tenants for you.

at4689 · #7 04-19-2006, 03:16 PM

last time i went to dubai was like 5-6 yrs. ago . i think real estate would be good there but im young and idk ihavent been there for a while, maybe our member from dubai can help you out.

Mindfull · #8 04-19-2006, 04:14 PM

Very interesting question, crosvs.
From the gate, I'd encourage a first investment closer to home, preferably domestic, since it's easier to understand & manage tenancy trends, market conditions, and tax details. However, there are many foreign property investments that offer great potential, especially for those who already hold investments elsewhere (hence related experience and a balanced portfolio).

If Dubai still looks specifically of interest, this article conveys some good considerations: (excerpt)

Quote:

You perhaps have to take a view on the future of Dubai. Will Dubai be a thriving, multi-cultural trade, financial, tourism and services hub in 10-15 years time? Or will the city suffer some sort of socio-economic or political cataclysm? Those who have seen the past 20 years smile at predictions of gloom which have always been wrong in the past.

Besides even if your property is worth nothing when your tenants have finished paying off your mortgage you still have a roof over your head, or you can continue to take the rent as your income.

Then again, you could argue that Dubai property is expensive and that anyone buying now will regret not waiting for a while. But is this true? At $1,000 per square metre for a villa, Dubai real estate is five times cheaper than in London where the average salary is no higher and maybe lower.

This is the last, and most important, consideration for an investor. The reality is that Dubai property is cheap, by international standards, by local standards, by rental yield, in absolute terms, by whatever yardstick you choose.

What will change this? New real estate laws? A greater availability of mortgages? More buyers moving into the market? A more peaceful Middle East? The success of Dubai? Most likely all of the above, and thus real estate prices will increase over time.

Can an investor go wrong? Of course, anyone can make basic mistakes in buying real estate, such as choosing a poor property in a bad location. But it is hard to make a solid argument against Dubai property investment right now.

More recent info here.
Hope this helps.

crosvs · #9 04-19-2006, 04:37 PM

Thank you for the feeback everyone ... Mindfull, I'll give that article a read however I should say I think I've been sufficiently encouraged to keep things close to home for this first round out.

Accella, as for your "blatant hijack" lol ...... let me get back to you on that

crosvs · #10 04-19-2006, 04:49 PM

ok i just read that article.

WOW.

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